Gosango, formerly Twongo Canada, is done and being sold

A deal site with one of the best sales to subscriber ratios I have seen in this market is unfortunately shutting down and selling off their assets to another Deal site. Gosango, formerly known as Twongo Canada, has announced that it has stopped offering deals and will go offline in October.

Gosango assets, including its email database, will most likely be sold to another larger deals  business.  Still confidential though. So as soon as we are allowed to state it, we will publish it.

UPDATE**  Gosango has announced that it has been sold to the local business ofSmart Betty in BC.

Gosango’s main competitive edge was that it operated only in small towns. There was less competition from other deal sites and those larger sites that operated there like Groupon did not bother having local sales reps in the area. Gosango had feet on the street, relationships with the small town community and when they ran a good offer, the whole town knew about it. Gosango owners are experienced and seasoned business veterans and they produced consistent revenues from their database month after month that rivaled some of the larger players on the market for that territory. Gosango also had a sales to subscriber ratio that I have yet to see matched in this industry with the possible exception of Tuango in Quebec. They were able to achieve between 5 and 6 times ratio on subscribers per month. That means, they consistently produced 5 to 6 times more in revenues per month than they had in subscribers. As stated, the only other Deals business to even come close to that would be Tuango in Quebec. But Gosango had the largest ratio and that is a testament to both Gosango owners and the consumers in the small towns they operated in. Consumers loved Gosango and it showed in their numbers. As a comparison to the rest of the industry, they average Sales to Database ratio in Canada has been 1 to 1.5x for larger sites and .5 to 1x for smaller sites. So a 5-6 times ratio is incredible.

Gosango was a profitable business until they ran into cash flow issues from a bad technology licensing deal for the platform they were using. The past 6-8 months have put a strain on their operations and they went looking for potential buyers. Hate to see them close down, they had several people on staff in Kelowna.

We wish Barry Chretien and Michael Minor from Gosango best of luck in their future endeavors.

On a side but related note: Gosango’s strategy of focusing on smaller towns is a sounds one. The larger players in the industry simply do not focus on promoting local offers in towns of 150,000 population or less and typically do not have sales reps in those markets. If costs can be kept down, then growing a deals business in strategic small towns can be effective (not all small towns are effective, they must have the income and the type of consumers that are necessary to survive in this business) .